VW chief sees sunnier outlook for industry in 2010

BERLIN: The head of Volkswagen, Europe's biggest automaker, forecast a slight uptick in sales in the sector next year driven by demand in China, Brazil and India, in an interview to be published Monday.

"I am counting on one or two million more cars being sold in our industry than this year," Martin Winterkorn told German business weekly Wirtschaftswoche when asked about the 2010 outlook.

While the hunger for new cars in China, Brazil, India and possibly Russia is expected to spur sales, Winterkorn said smaller profit margins in such markets meant that revenues would be modest.

"That is why 2010 will be a pretty tough year," he said.

But he predicted VW would expand its market share: "I have no doubt about that."

Earlier this month the company said it expected to post record sales again this year, but forecast 2010 would be "extremely difficult" as cash-for-clunkers bonus schemes wound down worldwide.

Germany has offered cash incentives to car owners to trade in older, less environmentally friendly models for newer, cleaner ones.

In the 11 months from January to November, sales gained two percent on an annual basis to 5.85 million vehicles, which allowed VW to say it expected a "slight rise in full-year deliveries" from the record 6.2 million in 2008.